Postings: $10.7 Million Grant Nullified; Atlantic Terminal Blow

Published: May 26, 1991

The long-delayed Atlantic Terminal project in downtown Brooklyn was set back further last week when a Federal judge nullified a $10.7 million grant from the Federal Department of Housing and Urban Development that was to have subsidized the project's housing and offices. The court found that the agency had failed to consider whether the development would gentrify the neighborhood and force out poor, minority residents.

Planned since 1985, the project envisions 1.8 million square feet of offices, stores and 642 subsidized apartments above the Atlantic Terminal of the Long Island Rail Road at Flatbush and Atlantic Avenues. The developers, Rose Associates and Forest City Ratner Properties of Manhattan, had prevailed in earlier suits, and the suit by neighborhood residents ruled on last week was the last impediment to construction.

The developers said they had not decided whether to proceed with the project. Others said the ruling might have little bearing if H.U.D. conducts another review and satisfies the court that the project's impact would be acceptable. But if the Federal grant is not saved, "I would be very surprised if this does not have a very serious impact," said Kathy Wylde, president of the Housing Partnership Development Corporation, a nonprofit group working with the developers.